As cost of living (COLA) regulations go, it is negligible. About 68 million social security recipients will receive a 1.6% increase in their monthly check starting in 2020. That means the average social security beneficiary will see their benefit increase by just $ 23.40 a month to $ 1,460. 

What’s more, some of the increase will be used to offset the rising cost of Medicare Part B, says Heather Schreiber, founder of HLS Pension consulting.

The government typically deducts Medicare Part B premiums from the beneficiary’s social security check. These premiums are expected to rise about $ 8.80 per month to $ 144.30 in 2020 for about 70% of Medicare beneficiaries.

So, what should you do?

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Welfare beneficiaries will have to look for ways to cut unnecessary costs if they want to maintain the desired standard of living. 

“Retirees living on a fixed budget may need to consider tightening the reins in areas of non-essential spending and, if necessary, working with a reputable financial professional to help them in making the cash they have saved for retirement work smarter,” says Schreiber.  

Some retirees only want to spend their interest income and dividends to Fund their retirement lifestyle. But many retirees may have to consider spending down their principal as well as to Fund living expenses. 

An often read rule of thumb is that you can withdraw 4% a year from the nest egg and not worry about running out of money for 30 years.

Consider investing in assets that need to keep up with inflation. Some low-risk investments include inflation-protected Treasury securities, or TIPS, and series I savings bonds. TIPS and Series I Savings bonds can be purchased at TreasuryDirect.gov.

Don’t, however, increase the amount of money you invest in risky – like stocks – assets. Of the three levers that can be adjusted to create additional income in retirement-increasing income, reducing costs and increasing risk – increasing risk, especially in retirement, can lead to disastrous results, says David Cechanowicz, senior financial planner with REDWIRE.

This may not be the most attractive option, but you should consider returning to work either part – time or full-time. Earned income is one way to offset the negative effects of inflation. 

Working longer can provide a significant multiplier effect for income in retirement, says Cechanowicz.  How so? One, working just one more year will generally increase an individual’s basic Social Security retirement benefit by boosting their lifetime earnings. Two, even in the years between age 62 and 66, each year of delay will increase the base Social Security benefit by about 6.7% per year. Three, that additional year of work means one less year of income needed in retirement. And finally, that additional year may enable an individual or family to pay down debt, which could reduce expenses in retirement.

“This could mean having to work longer, or dipping into retirement savings to delay claiming,” says Cechanowicz, adding that long-term benefit increases could make a significant difference in retirement income.

If you haven’t retired yet, Cechanowicz also recommends saving as much as possible to reduce your reliance on social security later. 

Social security Cola is so low because inflation is low. COLA, in order of background, is tied to the consumer price index for urban wage and clerical workers, or CPI-W. in Other words, the cost of goods and services such as housing, clothing and transportation is not rising as fast. The bad news, according to the senior citizens League, is that the cost of living for the elderly is rising faster than for the General population.

Low COLA will limit, at least for some, Medicare Part B premium increases under what’s called the “keep harmless” provision in the law, says Jim Blankenship, author of the social security owner’s Guide.

Current legislation contains a provision that limits the increase in the dollar Supplement to an increase in a person’s social security benefit.

This would apply to anyone receiving social security benefits for less than $ 550 a month.

“It’s a cold comfort for people in this position,” says Blankenship. “While their net social security benefit will not decrease, the cost of living continues to rise.”

Robert Powell is the editor of Thestreet’s Retirement Daily www.retirement.thestreet.com and regularly contributes to the US TODAY. Any questions about money? Write to Bob at [email protected].